Book-Keeping and Accountancy · Ch 8 — Rectification of Errors
Errors and Their Effect on the Trial Balance
Errors and Their Effect on the Trial Balance
A Trial Balance lists every ledger account's balance in two columns and totals them; if the double entry behind every transaction has genuinely been completed correctly, the two column totals must be exactly equal. This makes the Trial Balance a first, mechanical check on the arithmetical accuracy of the books — but it is only a PARTIAL check, because some errors disturb this agreement and some do not.
Two-Sided (Complete) Error
An error where BOTH the debit and the credit side of the double entry were affected equally — the transaction itself may be wrongly recorded, but the two sides still balance each other, so the Trial Balance still agrees.
One-Sided (Partial) Error
An error where only ONE side (debit or credit) of a transaction was affected, or was affected by a different amount than the other side — this genuinely unbalances the books, so the Trial Balance will NOT agree.
| Kind of error | Does it disturb the Trial Balance? | Example |
|---|---|---|
| Error of Principle (e.g. furniture debited to Purchases) | No — both sides equal, just the wrong account | Furniture A/c should have been debited ₹4,000; Purchases A/c was debited ₹4,000 instead — the debit total is still correct |
| Complete omission (transaction never entered anywhere) | No — neither side is affected at all | Goods returned to a supplier never recorded in either the Purchases Return Book or the supplier's account |
| Wrong amount entered identically on both sides | No — both sides wrong by the same amount | A ₹3,000 purchase entered in the Purchases Book, and hence posted everywhere, as ₹300 |
| Compensating errors | No — by definition, they cancel out | Purchases Book and Sales Book each overcast by the same ₹500 |
| Posting omitted to only ONE account | Yes | A purchase entered correctly in the Purchases Book, but never posted to the supplier's personal account |
| Posted to the correct account but the WRONG SIDE | Yes | ₹600 received from a debtor posted to the debit of his account instead of the credit |
| Wrong casting (total) of a subsidiary book or a ledger account | Yes | The Sales Book's monthly total carried forward ₹800 too high |
An error where both the debit and credit side of the double entry were affected equally, so the Trial Ba …
An error affecting only one side of a transaction, or affecting the two sides by different amounts, so the Trial Ba …